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Like Kottinger Place, Regalia House is an older structure that is in disrepair and not in conformance with current building codes and accessibility standards. As a result, while significant upgrades are currently advisable, they will be mandatory in the near future. However, it is doubtful that the building will warrant the cost required for these upgrades and as a result, it is likely that staff would recommend removal of the building and identification of appropriate replacement space. As a result, a new "City Room" would represent a long term opportunity for retaining recreational meeting space in this area. Due to the fact the Regalia House was occupied exclusively by the Veteran's groups during the remodel on the Veterans Memorial Building, it has not yet been fully reprogrammed. As a result, the impact on current usage would not be significant. It is anticipated that the City and the project's owner would need to develop "City Room" use criteria that meet City and project needs. Further, exterior design would need to include signage clearly identifying City use and ownership, if appropriate. While the above concept could meet City needs, CCH has expressed concern that project financing from grants and tax credits may not permit project development funds be used for a room used primarily by the City. To address this concern, CCH has determined that the "City Room" may require a separate legal description that distinguishes it from the rest of the community building. As a result, some or all of the cost of constructing the room may need to be funded by the City. Since there a definitive resolution on the matter is not available, staff will monitor this situation during the funding process and will address funding and use issues as the project develops. The Parks and Recreation Commission agreed to the Task Force's proposed plan for a "City Room" and use of the Regalia site. Three Story Structure The Task Force has consistently looked for ways to both maximize the number of units on the site, develop a sense of community among seniors who will reside at the site and address concerns raised by local neighbors. In order to address the first two issues, the Task Force is recommending a conceptual site plan that includes a combination of one, two and three story buildings. The three story portions of the development are located towards the center of the development and are intended to be designed to minimize visual impacts. These building will house 58 of the total units and will function to keep the development compact so that tenants have easy access to all parts of the development, more open space is provided and a more pedestrian friendly environment is created. The current design concept calls for all buildings to be linked by interior hallways. As part of the Task Force's public outreach, a number of residents on Second Street and Kottinger Drive have expressed concern with visual impacts resulting from the three story structures. Residents pointed to the fact that the overall elevation at the site is higher then surrounding areas and that while there are three story structures on Vineyard Avenue, those structures are on the north side constructed at grades below Page 6 of 8